Single Resolution Board publishes Q3.2020 MREL dashboard

NEWS
Published
Feb 11th '21
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The Single Resolution Board (SRB) has published its minimum requirement for own funds and eligible liabilities (MREL) dashboard covering the reporting period Q3.2020.

 

Key findings:

 

  • The average BRRD1 MREL target, in percentage of the total risk exposure amount (TREA), rose by 0.6% from June  to September, to 28.6% TREA; the increase was mostly driven by the growth in total liabilities and own funds (TLOF).
  • After recording an increase in Q2.2020, the average MREL shortfall reduced to 1.9% TREA in Q3.2020, as the increase in MREL eligible resources offset the growth of MREL targets.
  • In Q3.2020, MREL issuances amounted to EUR 50.9 bn, a reduction of 42% (EUR 37.3 bn) in comparison to Q2.2020. Beyond seasonal effects, the availability of central bank funding was among the factors responsible for the pronounced reduction.
  • Cost of debt stabilised in Q3.2020 and approached pre-pandemic levels in January 2021.

 

Download: 2021-02-08 SRB MREL Dashboard Q3-2020

 

Source: SRB

 

About the Single Resolution Board

 

The Single Resolution Board (SRB) is the central resolution authority within the Banking Union, which at present is 19 eurozone countries, Bulgaria and Croatia. Together with the national resolution authorities it forms the Single Resolution Mechanism. The SRB works closely with the European Commission, the European Central Bank, the European Banking Authority and national authorities. Its mission is to ensure an orderly resolution of failing banks, protecting the taxpayer from state bail-outs, which is promoting financial stability.